Recurring jobless claims ticked up as workers may be finding it harder to get a new job.
The number of Americans filing for new unemployment benefits declined for the fifth consecutive week to a three-month low as the U.S. labor market continues to perform at a solid pace.
Initial jobless claims declined by 7,000 to 221,000 for the week ending July 12, according to the Department of Labor.
This is down from an upwardly adjusted 228,000 in the previous week and represents the lowest level since mid-April.
The four-week average, which strips out the week-to-week volatility, tumbled to 229,500 from 235,750.
Jobless claims filed by former federal workers surged by 158 to 596, up 85 percent from a year ago.
Economists have been monitoring this statistic closely to determine the effects of the current administration’s policy actions.
Recurring jobless claims—a measure of the number of out-of-work individuals currently receiving unemployment benefits—ticked up to 1.956 million from a downwardly revised 1.954 million.
Despite concerns that President Donald Trump’s tariffs would weigh on the U.S. economy and job market, recent data indicate that employment conditions remain solid.
“On the employment front, the most recent data show a solid labor market, as demonstrated by measures of unemployment, employment, vacancies, hiring, and quits,” New York Federal Reserve President John Williams said in a speech at a July 16 New York Association for Business Economics event.
The June unemployment rate decreased to 4.1 percent. The economy also added 147,000 new jobs, higher than the consensus forecast of 110,000.
Earlier this month, the Bureau of Labor Statistics reported that job openings surged to 7.77 million in May. Job quits, which can signal workers’ confidence in finding a new position, rose by 78,000 to 3.293 million.
Layoffs have also generally trended lower since April.
Planned job cuts totaled 47,999 in June, the lowest of the year so far, according to global outplacement firm Challenger, Gray and Christmas.
“The bulk of companies cited economic conditions last month. We saw some DOGE activity and have tracked over 2,000 jobs directly attributed to tariffs this year, but for the most part it was a quiet June,” Andrew Challenger, the company’s senior vice president, said in the report.
By Andrew Moran
